فوركس ساتو

TRADING RULES
ABOUT PROFITS
Before we move on to the next part of this eBook, where we’ll look
at specific applications of the above variations, let’s first discuss
profits.forex sato
Different traders have different philosophies about how many pips
to go after. (1) Some traders go after large pip targets – from 50 to
500 (or more). They are often position traders (leaving trades over
night – often for days). Usually they trade one or two lots, and use
stops of around 50 to 100 pips. (2) You then have other traders that
focus on day trading (within one day, usually within hours) to get 20
to 30 pips trading one to a few lots. (3) You also have another breed
of trader that will trade multiple lots to catch just 5 to 10 pips,
usually within minutes (i.e. trading 10 lots for 10 pips is an equal
profit to someone trading 1 lot for 100 pips, both would equal
$1,000 profit).
There is nothing wrong with trading with any of these objectives in
mind. In fact it is good to be versatile in your trading. They each
have their pros and cons, but they are all good.
You will find that you’ll tend to have a personal preference. Me, I
usually like going for around 20 pips (though I often let it ride for
more with trailing stops). forex sato
Generally, the larger the pip target you are shooting for the greater
will be the chance that the market will turn around on you before it
reaches your target. Conversely, the smaller the pip target you are
shooting for the greater will be the chance of the market reaching
your target. forex sato
All things considered equal, there is a greater chance that you’ll
successfully pull 20 pips out of the market than 50 pips, or even 30
pips. The further out you go the more likely it becomes that the
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market will change it’s mind. A relatively safe way to trade is to
just go after small trades of 20 pips or so, but again there is nothing
wrong with going after huge trades (if you can safely afford the
risk).forex sato
forex sato